Indian economy in a sweet spot, structural reforms boosting infra: IIFCL MD

India Infrastructure Finance Company Ltd (IIFCL) MD P R Jaishankar on Wednesday said the Indian economy is at its best with the GDP growing at the fastest rate. Announcing the annual financial results of the company, Jaishankar said structural reforms have led to revival of the infrastructure sector.

"Indian economy is at its best. It is in a sweet spot. With real GDP growing at the fastest rate, national monetisation pipeline, national infrastructure pipeline, Gati Shakti, and constitution of insolvency board along with reformative steps in the structural areas like revision in the concession agreements, expediency in land acquisition, speeding of arbitration, have led to revival of infrastructure sector," Jaishankar said.  

"Current decade is full of action, operational assets are now growing and this class of projects is becoming an investment destination for both domestic and global investors. Secondary market in infrastructure is also growing with INviTs having assets of about two lakh crore," he added. 

For FY24, the company posted a profit after tax of ₹1,552 crore compared with Rs 1076 crore in FY23.

"FY24 has been yet another year of record breaking sanctions, profitability and asset quality. We have done the highest ever annual sanction of Rs 42, 309 crore, compared with ₹29,171 crore in FY23. Cumulative sanctions stand at ₹2,55,687 crore. Disbursement in FY24 stands at ₹22,356 crore. Cumulative disbursement stands at 1.28 lakh crore," Jaishankar says 45 percent of the entire business for IIFCL has come in the last four years.

“This is the result of persistent efforts, a focussed strategy plan put in place in 2021-22 and a detailed risk management policy. Asset quality has improved significantly over the last year. GNPA stands at 1.61%, and NNPA 0.46%,” Jaishankar says, pointing out that the slew of reforms taken by the government in the last few years has provided a leg up to infrastructure sector in the country.